Question 6 Which of the following statements is CORRECT? A. In the statement of

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Question

Question 6 Which of the following statements is CORRECT?

A. In the statement of cash flows, a decrease in inventories is reported as a use of cash.

B. In the statement of cash flows, a decrease in accounts receivable is reported as a use of cash.

C. Dividends do not show up in the statement of cash flows because dividends are considered to be a financing activity, not an operating activity.

D. In the statement of cash flows, a decrease in accounts payable is reported as a use of cash.

E. In the statement of cash flows, depreciation charges are reported as a use of cash.

D. In the statement of cash flows, a decrease in accounts payable is reported as a use of cash.

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